re: Student-Loan Delinquencies Now Surpass Credit Cards

It's not that simple. True, there is some recourse for the DOE to recoup some of the cost of default on working adults... That's not the problem. If your trying to force collection of a defaulted loan with someone who doesn't have an income, you're not going to get too far. I can't tell you the number of 70 and 80 year old borrowers who call the office with no ability to pay... Making $800 on SS and never going to work again. People are going back to school at age 65 and taking out $70k for the University of Phoenix... then filing for disability. Trust me, there's a big problem growing out there.

The private universities must be making a killing. Between these easy student loans and programs like the GI Bill, these 'universities' are charging outrageous tuition and pumping degrees out left and right. Hell, I work with a guy that spent $47,000 to get a associates from ITT and he doesn't know shite about the field we work in. $47.000 grand!!! Thats a lot of freaking money for an associates.

re: Student-Loan Delinquencies Now Surpass Credit Cards(Posted by supadave3 on 11/30/12 at 3:44 pm to Sheep)

quote:You sound like a communist

quote:Private industry, sucking on the government tit far more than the "leeches" of society? The hell you say.

A lot of law schools are doing the same thing. Admitting almost anyone and charging them out the nose for a law degree and then manipulating bar passage rates and job placement rates to justify the high tuitions. Its a sham.

re: Student-Loan Delinquencies Now Surpass Credit Cards(Posted by rickgrimes on 12/1/12 at 10:57 pm to DontTazeMeBro)

quote:We've got a huge problem on our hands over the next several years. Student loan debt is nearing $1 trillion and default rates are skyrocketing with taxpayers holding the bag.

Having recently finished reading The Big Short, I am obviously looking for the next big bubble. Anybody know of this can blow up in our faces like the subprime mortgage business? If so how much would the impact on the economy be? Could there be a Michael Burry out there today who has made his play and just waiting to cash in when this student loan bubble bursts? If you wanted to short something, where would you start looking?